Sara checked out an interesting website because the front page appeared to show a visual graphic depicting one of her favorite bands. Taking a closer look, she realized the logo was actually for a sports team, which did not interest her. What caused Sara to interpret this message incorrectly? O a. a stereotype O b. the media O c. peer pressure O d. a symbol
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- . When Chinese automakers began exporting cars, rather thanfocusing on developed nations in the West, they shippedautos to emerging markets in countries such as Algeria, Russia,Chile, and South Africa. In these markets, even used vehiclesfrom multinational manufacturers are relatively scarce—andrelatively expensive. The Chinese automakers, who prioritizelow cost rather than design or even safety, applied a penetration-pricing strategy. A woman in Santiago, Chile, who boughta new Chery S21 explained, “The price factor is fairly decisive.I paid $5,500 new and full. Toyota with similar features costsaround $12,000.” Why do you think Chinese automakerschose that pricing strategy? Do you think it was successful?As Chinese regulators pressure these manufacturers to maketheir cars safer, do you think they will be able to keep theirprices low compared with those of the international automakers? Why or why not?26How is a patent obtained? Select one: O a. automatically O b. register a grant application with USPTO O c. by putting idea out to the public O d. by adding a "tm" to itExercise 5. You are the manager for a monopoly with costs, demand, and marginal revenueas in the graph at the top on Figure 1. a. Suppose economic conditions change in such a way that the demand curve for yourcompany shifts left.b. Draw a demand curve on the bottom graph on Figure 1 that leads to zero economicprofits.c. Draw a demand curve on the bottom graph on Figure 1 such that any furtherleftward demand shift will cause you to shutdown.
- Next Question Consider the network scheduling profit matrix Can the Pareto Critenon hep me networks sette on a single equibrum? Explain The Pareto Criterion Ne O A cannot help the networks sette on a singlo equibrum because the Wednesday Thursday networks cannot communicate OB. can help the networks settle on a single equibrum because the networks have dominant strateges Wednesday OC. cannot help the networks settie on a singie equilbnum because no Nash equilibria is better for both networks 40 Nebok 2 O D. can help the networks settle on a single equibrium because one Nash equilibrium has the highest joint payoffs O E. cannot help the networks settle on a single equilbrum because the networks must schedule simultaneously ThursdeyCape Town and Durban were first developed in the 17th and 18th centuries as trading posts on theshipping route between Western Europe and Asia. During the 19th century, this role changed withthe discovery of diamonds and gold in the interior. The port cities developed from being stop-overand service points providing shipping services, to being ports through which commodities weretraded.”The change in the that occurred in the Durban and Cape Town ports during the 19th century is best explained by…a) A movement along the production possibilities frontier.b) A movement towards the production possibilities frontierc) An outward movement of the production possibilities frontierd) An inward movement of the production possibilities frontierMany schemes for price discrintination involve somecosL For example, discount coupons take up the timeand resources of both the buyer and the seller. Thisquestion considers the implications of costly pricediscrimination. To keep things simple, let's assumethat our monopolist's production costs arc simplyproportional to output so that average total cost andmarginal cost arc constant and equal to each other.CHAPTER 15 MONOPOLY 317a. Draw the cost., demand, and marginal-revenuecurves for the monopolist. Show the pricethe monopolist would charge without pricediscrimination.b. ln your diagram, mark the area equal to the mernopolist's prolit and call it X. Mark the area equalto consumer surplus and call it Y. Mark the areaequal to the deadweight loss and call it Z.c. Now suppose that the monopolist can perfectlyprice discriminate. What is the monopolist'sprofit? (Give your answer in terms of X, Y, and Z.)d. What is the change in the monopolist's prolit fromprice discrimination? What is the…
- Critical Thinking In many oligopolistic industries, firmsfollow a price leadership strategy, in which an accepted industry leader sets, raises, or lowers prices and theother firms follow. In what ways is this policy good andbad for the industry? In what ways is this good or badfor consumers? Whal is the difference between priceleadership and price fixing? Should governments al- low industries 10 use price leadership strategies? If not,how can they prevent it?Discussion Question 13-11 Network effects give Internet firms a boost with respect to first mover advantages. This is because with network effects O whichever firm's network becomes the largest will become the most valuable to potential customers and will therefore attract even more users. O only firms with access to proprietary technology can form a network. O networks can be networked to create even more traffic and profits. O the first internet firm to establish a network has the most influence over any regulation. When network effects are at play, an increase in the number of people using a given product will shift the demand curve to Oright and make it more elastic. O the right and make it more inelastic. O left and make it more inelastic. O left and make it more elastic. NOV 12 tv NA 1050 40 30 20 10 200 400 600 B00 1000 Quantity per period Suppose there are no fixed costs and marginal cost is a constant $30. a. What sre the perfectiy competitve price and output? Price: $ 30 0 Output: 500 b. What are the cartel (monopoly) price snd output? Price: S 40 0 Output: 300 O c lfthere are only four firms in the cartel, what are the price and output of esch firm, assuming equal shares? Round your anawers to 1 decimal plece. Price:$ 40 0 Output: 75 0 sanuana pue Ssog
- Until the 1980s, AT&T held a monopoly over thenational market for phone services. Suppose thatAT&T argued that it was a natural monopoly,because the fixed cost of creating a nationwidephone network generated huge economies ofscale, and that there was therefore no welfareloss associated with its monopoly. Counter thisargument by explaining how even a naturalmonopoly causes deadweight lossKate and Alice are small-town ready-mix concrete duopolints. The market demand tunction is o- 20,000 - 200Pwhere Pis the price of a cubic yard of concrete and Ois the number of cubic yards demanded per year. Marginal cost is sa0 per cubic yard. Suppose Kate onters the market first and chooses her output belore Alice. What is the difference in Alice's profit when Kata enters the market tirst, compared to when they simultanecusly select ther outputa? When Kate entors the markat first, Alice's profit is $3,888.a0 lower. O When Kate enters the market fest, Alice's profit is 513,333.33 lower. O When Kate enters the market first, Alice's profit is $5,000 lower. O When Kate onters the market first, Alice's proft is $1.111.11 higher,Isabella runs an IT solutions business for her college peers and has only one competitor, Franco.Isabella and Franco have decided to collude andprovide monopoly-level output. Given that theyare both freshmen and intend to run their businesses for the next three years, is this agreementsustainable? Would your answer change if Francoknew he planned to transfer to another collegenext year?